NASDAQ$TLS

Telos Corporation · Q3 2025 earnings

Q3 2025 earnings · · Before market open · Investor relations

Briefing

Telos reported a year-over-year revenue growth of 116% in Q3 2025 and exceeded guidance expectations.

Telos delivered $51.4 million in revenue for Q3 2025, marking a 116% year-over-year growth, driven by a surge in Security Solutions. Despite a GAAP net loss, the company posted positive adjusted EPS and free cash flow, and raised guidance for the second half of 2025.

  • Q3 2025 revenue reached $51.4 million, exceeding guidance and up 116% year-over-year
  • Security Solutions revenue grew 154% YoY, contributing the majority of total revenue
  • GAAP net loss was $2.1 million, while adjusted EPS was $0.09
  • Free cash flow was $6.6 million, with a margin of 12.8%

Headline financials

Total Revenue

$51.4M

Previous: $23.8M+116.3%
EPS (adj)

$0.09

Previous: -$0.10+190.0%
Gross Margin

39.9%

No prior period
Cash Gross Margin

44.8%

No prior period
Adjusted EBITDA

$10.1M

No prior period
Adjusted EBITDA Margin

19.6%

No prior period
Cash Flow from Operations

$9.15M

No prior period
Free Cash Flow Margin

12.8%

No prior period
Shares Repurchased

584.2K

No prior period
Capital Expenditures

-$709K

Previous: -$381K-86.1%
Net Income

-$2.11M

Previous: -$28.1M+92.5%
Operating Income

-$2.47M

Previous: -$28.9M+91.4%
Gross Profit

$20.5M

Previous: $3.14M+553.7%

Revenue & EPS history

Telos · Revenue · Quarterly

$51.4M

Q3 2025+116.3%vs Q3 2024
Beat estimate in 6 of 14 quarters(43%)
ActualEstimate

Forward guidance

Telos raised its outlook for the second half of 2025, forecasting continued strong revenue performance in Q4, while accounting for possible short-term delays from federal government shutdowns.

Tailwinds

  • Q4 revenue expected between $44.0M and $46.3M
  • Full-year 2025 revenue expected between $162.0M and $164.3M
  • Q4 adjusted EBITDA expected between $4.0M and $5.7M
  • Adjusted EBITDA margin for Q4 projected between 9.1% and 12.3%
  • Raised guidance based on strong Telos ID performance and revenue weighting to Q3

Headwinds

  • Potential for short-term administrative delays due to federal government shutdown
  • Q4 revenue range implies sequential decline from Q3 peak
  • GAAP net income guidance not provided
  • Adjusted EBITDA margin guidance reflects narrower range compared to Q3
  • Uncertainty remains around timing of certain government contracts

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q3 2025

Historical avgQ3 2025

-4.3%

Avg return

Earnings day

-0.2%

Avg return

5 days after

+1.5%

Avg return

30 days after

36%

8 / 22 earnings

Positive

+24.8%

Q3 2023

Best reaction

-68.4%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-5.4%-6.7%
Q4 2025-3.7%+1.2%+3.7%
Q3 2025+21.5%-8.3%-5.0%
Q1 2025-19.6%+6.9%+12.2%
Q4 2024-9.1%-7.0%-15.7%
Q3 2024-12.7%-22.3%-17.1%
Q2 2024-30.2%-41.8%-15.6%
Q1 2024-11.2%+16.6%+18.6%
Q4 2023+24.8%+38.7%+14.3%
Q3 2023+24.8%+38.9%+45.1%
Q2 2023+12.2%-3.5%-7.4%
Q1 2023+22.7%+55.2%+43.1%
Q4 2022-24.4%-22.2%-20.9%
Q3 2022-68.4%-55.8%-60.4%
Q2 2022+3.9%+9.9%+17.1%
Q1 2022-0.7%+7.7%+30.3%
Q4 2021-2.2%-2.1%-6.8%
Q3 2021-27.9%-22.8%-36.5%
Q2 2021-0.5%+12.7%+27.0%
Q1 2021-16.5%-14.2%+0.3%
Q4 2020+14.0%+7.3%+2.4%
Q2 2020+14.0%+7.3%+2.4%
Q3 2020
Q1 2020
Q2 2019
Q4 2019
Q3 2019
Q1 2019
Q4 2018
Q3 2018
Q2 2018
Q1 2018
Q4 2017
Q3 2017
Q2 2017
Q1 2017
Q4 2016
Q3 2016
Q2 2016
Q1 2016
Q4 2015
Q3 2015
Q2 2015
Q1 2015
Q4 2014
Q3 2014
Q2 2014
Q1 2014
Q4 2013
Q3 2013
Q2 2013
Q1 2013
Q4 2012
Q3 2012
Q2 2012
Q1 2012
Q4 2011
Q3 2011
Q2 2011
Q1 2011
Q4 2010
Q3 2010
Q2 2010
Q1 2010

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